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Definition

Qualified Mortgage

A home loan that meets CFPB rules limiting risky features, giving lenders legal safe harbor.

Written by Jere Salmisto·Reviewed by CalcFi Editorial·Last verified: 2026-05-13
TL;DR

Qualified Mortgage is A home loan that meets CFPB rules limiting risky features, giving lenders legal safe harbor. Used in mortgage.

What Is Qualified Mortgage?

A Qualified Mortgage (QM) is one that satisfies the Consumer Financial Protection Bureau's ability-to-repay rules: no negative amortization, no interest-only periods, no balloon payments, points and fees within caps, and verified income. Most conforming loans are QMs.

Related Terms

Mortgage
A loan used to purchase real estate, secured by the property itself.
Fixed-Rate Mortgage
A mortgage with an interest rate that stays constant throughout the loan term.

Related Calculators

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